CORONAVIRUS FINANCIAL IMPACT 03-05-20

CORONAVIRUS FINANCIAL IMPACT 03-05-20

Some high water remaining tried anyway best time to the open waters around eight 830 this morning.

It is 10 minutes away from 7 o'clock to spend a few minutes talking with chris hopkins from barnett and company about the coronavirus.

What's the impact your morning chris, good to see you this coronavirus is causing big job concern for maybe even borderline panic in the financial world.

Take the health aspect of corolla totally out of the picture.

This is causing on of the biggest market up tables we have seen and how long well, certainly since 2008 in terms o the volatility nontender.

The magnitude not so much to know one of the things it at the worst point, the panic, the cell was down about 13%.

So that happens about every two 2 1/2 years on average we just forget right so we've actually had tha happen at the end of 2018, which wasn't that long ago we had a fourth the client hardly remember back.

We had another virus scare, which was the z outbreak when he 15.

Same thing market soul off about 14 when he 15.

Same thing market soul off about $.14 came right back so you know we we we tend to forget that these things happen more often than we remember.

I was reading your article that you published yesterday i was talking about the market so often going viral l1.

What's causing this selloff of certain algorithms that are preestablished and some computers on wall street jacqueline about yeah absolutely it it is now the case that at least 75 to 90% of the daily freight volume.

The stock marke is not you and me placing order with computers executing trades based on programs call programmer algorithmic trading and has taken over the market i terms of in terms of just total volume.

Another reason that matters is in normal times it adds liquidity in other words, if you decide you want to sell is always a buyer pewter out there looking to buy, but those things are based on program so if something like a virus jumps up and the program doesn't know how to filter that data may start selling well, there's no buyer's rights of the computer.

What happens is that enough in them market with uncertainty.

The computer programs all say sell and none of them say by that causes you big down process.

We would had 345% swings in a day which is not explained to me why investors should not write because you can't beat the programs first of all, you can't out run the computers number one number two is let's say that on the the worst day which was down 13%.

You and i decided look what's let's get out of this thing already, we would've missed two thirds of the comeback as of yesterday, so best the fundamental reason is investors if you if your money is in you need it within five years.

It shouldn't be in the stock marke anyway right and for your longe- term investments.

You have a game plan.

You would just that game plan periodically throwing the thing to do right now is no first will not.

If you're investing your 401(k) every dollar you put in last week but you more shares or more stock or etf's are funds that would've bought two weeks earlier and then periodically you rebalance your portfolio every quarter or twice a year.

You take from what's up and you move into what's down and you do that routinely and regularly and you look back.

So here's an example.

If you had done nothing going into the 2008 market crash market went down 30% but you di absolutely nothing.

You would have twice as much money today as you did before that she well, the interesting perspective on that.

So there is an opportunity will have a couple seconds left this is a good opportunity for investors to do just that, systematically, just keep doing chris is covered you in touch with chris and find out more about this and will be joining us to our lovely bar 10 o'clock show and company just down the road wall street and their website